Items filtered by date: 17 April 2018

Ireland/UK: Breedon Group has acquired Lagan Group for Euro527m. The deal will be financed from a new loan, extended credit and an equity placing. The purchase will see Breedon Group enter the Irish market as it takes control Lagan’s production assets including a cement plant in Kinnegad, nine active quarries, 13 asphalt plants and nine ready-mixed concrete plants. The deal will complete on 20 April 2018.

Following the acquisition of Lagan, Breedon Group will operate two cement plants, around 70 quarries, 40 asphalt plants, 200 ready-mixed concrete and mortar plants, nine concrete and clay products plants, four contract surfacing businesses, six terminals and two slate production facilities. The group will also employ nearly 3000 people. It says its strategy is to continue growing organically and through the acquisition of businesses in the heavyside construction materials market.

Indonesia: Cement sales rose by 8.4% year-on-year to 16.4Mt in the first quarter of 2018 from 15.1Mt in the same period in 2017. Particular rises were noted in Central Java, Sumatra and Kalimantan, according to data from the Indonesian Cement Association. Total exports of cement and clinker rose by 79.6% to 0.70Mt from 0.39Mt.

Tajikistan: Cement production has more than doubled to 0.78Mt in the first quarter of 2018 from 0.36Mt in the same period in 2016. The rise has been attributed to new infrastructure projects, increased residential construction and higher exports, according to the Azer News newspaper. 172,000t of cement was exported to Uzbekistan, 131,000t to Afghanistan and 19,000t to Kyrgyzstan. 3.1Mt of cement was produced in the country in 2017 and over 1Mt of this was exported to the three countries led by Afghanistan.

The country has 13 cement producers with a total production capacity of over 4Mt/yr. However, the country is estimated to only need up to 3.5Mt/yr.

India: UltraTech Cement has raised its direct offer to buy Binani Cement to US$1.21bn. Previously it made a direct offer of US$1.11bn to Binani Cement in the form of a so-called ‘comfort letter’ that Binani Industries used to stop the insolvency process. UltraTech Cement made this latest offer to the resolution professional handling the insolvency process of Binani Cement, according to the Economic Times newspaper. The move follows a decision by the Supreme Court on 13 April 2018 to block UltraTech Cement’s first offer. However, the court will consider a plea by a group of operational creditors that is backing the higher offer in late-April 2018.